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Investors Cashing Out After Post-Fed Rally

9/25/2013 9:43AM

The stock market's surge is pushing some investors to cash in a few of their chips. Their reasons: after such a strong run, the rally may be losing steam and the Fed will soon begin withdrawing the stimulus it has been injecting into the economy. Steven Russolillo reports. Photo: Getty.

This transcript has been automatically generated and may not be 100% accurate.

... the ... stock market's just posting some investors into cash and you ... all the ships to explain what's going on and we will Street don't Steve was full state ... beyond that so will take catching on the chips aam means selling stocks when ... they're selling stocks that selling bonds in the online Owens is there they're just moving into cash and serve the wheat and see mentality what with what's interesting about this story that than stopper pointed ... on today is that ... I've just talking people and only do like you know I've been raising cash positions recently know the Fed ... made the move comes as people have the big rally and ... I'm just so it brings a little more cash than I normally wouldn't just to sort of ... wait and see what happens next with with the same with the economy with the Fed ... to sell a process of went with that that's the interesting and more more people moving its cash so we look at the numbers ... and only one that might look like a twenty month which is a proxy for all cash from its two point seven trillion dollars of the week ended September the lump which is its highest level since February right so that's the interesting thing is that the trend in today's money market funds has been going up on the past few months and a few weeks ago ... I still since February so ... this is something that is happening now until ... they raise the question ... why people doing this and they are uncertain about the timing and uncertain about markets that sort of mix of all the above rate now ... at it from the people that we quoted in the story now they're they're saying ... that we need to see what happens with the fiscal plate done in the DC there waiting to see what the Fed is going to do next and all that ... the market up twenty percent rate now just a selected items as the sun ... and a maximum Wall Street that you you you don't go broke taking a profit so I got some profits Ittai companion to keep some powder dry ... for a time like that ... now the reason I'm not the way the look of this is that when when that people are pulling back that smell that means that there's money to put into a mock its uneasy could go on a price for that that's the so the B ... Thomas of Libor reverse opinion right exactly yet so there is no a lot of cash on the sidelines then yes ... if that money does come pouring back into stock or you could see stocks move higher from these levels ... you know the big theme the women's husbands twenty thirteen as the train station people moving out of bonds and into stocks would stop them now but it's a it's not so it's in those wee years ago sector here in this in this story because that BP had been happening and any kind of stop and now people are moving out of bond that atheism into cash since about maybe ... that money from cash and then ... move back into mines azimuth which could be good for stock no longer rather than some of the court should have won when we look at ... this something neutral funds typically used by small and bass this ... and they are horrible ... at making investment decisions they ... buy lying on a solo ride do it repeatedly and become a lose lose the money ... so it was an old beat Millwall neutral fund money as small investors with a coupon of a dry and harden is yet exactly and so you're right the contrary investor will look at the retell what the Beetel flows are doing this and I'll say ok ... people are buying them into signing up for Sunday the timing and so ghastly this there there's nothing contrarians elements of this of people look at this concert of maybe say of this is actually a bullish sign for stocks but I think my life right now though ... I think that even though the market is ... in the SB five hundred and forty losing streak for now but ... it's still less than two percent away from its record high it's the low twenty percent rate now I think what you did for the year I think what you're seeing is people to sensing that insane ... um interesting profit in twenty thirteen profits or curb inflation ran much deeper still a great story with them